Industries with the Highest Profit Margin in Australia in 2022

1. Retail Superannuation Funds in Australia

Profit Margin 2022: 90.7%

The performance of the Retail Superannuation Funds industry has fluctuated significantly over the past five years. Industry revenue is expected to rise at an annualised 7.8% over the five years through 2021-22, to $75.3 billion. This trend includes a decline of 32.8% in the current year, following significant growth in 2020-21 as the industry rebounded from the investment losses incurred in 2019-20. Industry revenue is highly volatile, and fluctuations in investment returns can cause revenue shocks. Due to this volatility, revenue is not an accurate representation of industry performance and size. Funds under administration (FUA) provide a better indication, and... Learn More

2. Superannuation Funds in Australia

Profit Margin 2022: 82.3%

Australia's superannuation system underpins the nation's retirement income system. Three pillars make up the pension system: a means-tested age pension, compulsory super contributions and voluntary savings. From 1 July 2021, the Superannuation Guarantee scheme requires employers to contribute an amount equal to 10.0% of an employee's income to the employee's choice of superannuation fund. This system has supported the Superannuation Funds industry over the past five years, which is expected to be one of the largest pension systems in the world.

Industry revenue is expected to fall at an annualised 8.1% over the five years through 2021-22, to $167.4 billion. This... Learn More

3. Iron Ore Mining in Australia

Profit Margin 2022: 48.6%

The Iron Ore Mining industry has benefited from major increases in iron ore prices, and small increases in production volumes over the past five years. As a result, industry revenue is expected to increase at an annualised 13.5% over the five years through 2021-22, to total $141.1 billion. This strong revenue growth is due to demand strength from China, and despite the COVID-19 pandemic from late 2019-20 through part of 2021-22. However, the high revenue growth trend over the period includes an anticipated 15.3% fall in the current year, due to weaker iron ore prices and higher global output.

Over the... Learn More

4. Toll Road Operators in Australia

Profit Margin 2022: 42.0%

Firms in the Toll Road Operators industry charge motorists for the right to access high-quality roads that reduce travel times and revenue from individual toll roads is typically stable. Individual assets grow in popularity with motorists over their lifetime, as congestion and market acceptance boost toll road use and allow operators to raise prices and expand. However, industry revenue volatility can rise when new roads enter operation. The industry is capital-intensive, as tunnels, bridges and other expensive design features are often built on toll roads to save motorists time on their commutes. Ideally, tolling revenue is sufficient to cover both... Learn More

5. Online Car Classifieds in Australia

Profit Margin 2022: 38.4%

The Online Car Classifieds industry's growth has slowed over the past five years. New passenger vehicle sales have declined over the period as deteriorating economic conditions negatively affected credit availability, constraining industry demand. In particular, the COVID-19 pandemic drove a significant fall in industry revenue in 2019-20 as restrictions on movement and gatherings reduced demand for motor vehicles and accompanying classified ads. Nevertheless, online car classifieds operators have benefited from rising demand for online services, with online classifieds websites supplanting newspapers as the main resource for private car listings. Industry revenue is expected to increase at an annualised 0.3% over... Learn More

6. Online Advertising in Australia

Profit Margin 2022: 35.1%

The Online Advertising industry has grown strongly over the past five years, as consumers have become more frequent users of social media, web-based applications and other internet systems. Industry operators provide services through search engines, online applications, online videos, streaming services and online directories. The industry is moderately concentrated, with the top four players accounting for approximately 60% of revenue in the current year. Google is the dominant player, with its search engine advertising services attracting significant web traffic from consumers and businesses. Google also attracts significant advertising revenue from its online video service, YouTube. The outbreak of COVID-19 in... Learn More

7. Residential Real Estate Advertising in Australia

Profit Margin 2022: 34.4%

The Residential Real Estate Advertising industry involves the listing of residential properties available for lease or purchase. Listings are primarily offered online, however advertisements can also be published in print. Markets for the industry include home-owners, lessors and property developers. The industry has benefited from relatively positive treading conditions over the past five years. The increase to the number of housing transfers over the period has boosted revenue, as the industry's larger firms typically charge on a fee-per-unit basis. The popularity of the internet has benefited the industry's online segments and allowed for increasing market consolidation demonstrated by the industry's... Learn More

8. Intellectual Property Leasing in Australia

Profit Margin 2022: 34.2%

Operators in the Intellectual Property Leasing industry lease their patents, trademarks, spectrum and other intangible property, to businesses in exchange for payment. Increased demand from downstream sectors, such as manufacturing, and professional, scientific and technical services, have supported the industry's performance over the past five years. Industry revenue is expected to increase at an annualised 4.7% over the five years through 2021-22, to $3.1 billion. Over three quarters of the industry's enterprises are expected to be non-employing in the current year. The tendency for non-employing owner-operators to take profit as imputed wages serves to boost the size of the industry's... Learn More

9. Grain Growing in Australia

Profit Margin 2022: 33.2%

The Grain Growing industry is export-oriented and produces wheat, barley, canola, other grains and oilseeds. Industry revenue has fluctuated over the past five years, due to volatile weather conditions, global grain prices and crop supplies. Industry revenue is expected to grow at an annualised 7.2% over the five years through 2021-22, to reach $21.1 billion. As Russia is a major producer of fertiliser, a key industry input, its price has significantly risen in 2021-22 due to the Russia-Ukraine conflict. Industry profitability has therefore fallen over the period as purchase costs have increased. However, higher output volumes due to improved rainfall... Learn More

10. Organic Livestock and Poultry Farming in Australia

Profit Margin 2022: 32.9%

Revenue for the Organic Livestock and Poultry Farming industry has grown moderately over the past five years. Consumers' acceptance of organic products as a healthy food option has supported revenue growth over the period. In particular, organic meat has surged in popularity, contributing to the industry's rapid expansion. However, drought conditions have severely affected supply, particularly over the two years through 2018-19, constraining growth. As a result, industry revenue is expected to rise at an annualised 2.8% over the five years through 2021-22, to $770.6 million. Mostly positive demand conditions have supported industry profitability. However, rising costs and an influx... Learn More